Charles River Labs (CRL – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Charles Rhyee from TD Cowen maintained a Hold rating on the stock and has a $179.00 price target.
Charles Rhyee has given his Hold rating due to a combination of factors related to Charles River Labs’ current financial outlook and market conditions. The company’s guidance for 2025 indicates a decline in revenue and adjusted operating margins, reflecting the broader trends in the biotech and large pharmaceutical sectors. Rhyee notes that the potential for further reductions in research and development spending by major pharmaceutical companies could negatively impact Charles River Labs’ future performance.
Additionally, there are ongoing concerns regarding the CDMO segment’s regulatory issues, which could pose a risk to business operations. The 2025 guidance for the DSA segment shows expected revenue declines due to lower study volumes and pricing pressures. While the company anticipates slight improvements in certain areas, such as biotech, the overall outlook remains cautious with limited room for further demand decreases. These factors contribute to Rhyee’s decision to maintain a Hold rating for the stock.
In another report released on February 21, Morgan Stanley also maintained a Hold rating on the stock with a $184.00 price target.
Based on the recent corporate insider activity of 63 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CRL in relation to earlier this year.